(Post Script: Page series D and E were price and
relative strength charts in the original publication. Current price and
relative strength charts can be viewed using the hyperlinks associated with the
ticker symbols contained in the page on investment
vehicles.)

Appendix D contains charts showing the historical performance of country
mutual funds available for each of the study countries. Relative strength charts
are also presented

13. The relative strength is relative to the U.S. Standard &
Poor’s 500 Index. Appendix E contains charts with this same data for WEBS.

A summary of one-year and five-year relative strength is presented in Figure
26. The benchmark United States stock market has been stronger than most other
countries over the last decade. Russia has been the best performing market over
the last year and over the last five years. It has significantly outperformed
any other market. The Templeton Russia Fund net asset value has quadrupled in
the last two years. The Netherlands, Spain, Sweden, the United States, and Hong
Kong have had comparable market performance. Most of the European industrialized
nations have performed well.

Many of the emerging markets have under-performed the major markets.
Pakistan, Philippines, Argentina, Thailand, and Korea are examples of emerging
markets with lackluster performances. A $1000.00 invested in the Pakistan
Investment Fund at the beginning of 1994 would be worth $412.00 today. A
$1000.00 invested in the First Philippine Fund in 1992 would still be worth the
same $1000.00 with no profit after five years.

13. Relative strength
is an indicator that compares the performance trend of a stock or group relative
to another stock, group, or market. The formula is

RS = (x/y*100) – (x/y*100 on Day #1).

The relative strength data was obtained from the Telescan (Telescan;
Houston, Texas) database on July 8, 1997.